Uber co-founder Travis Kalanick rumored to sell 29% of his company stake

Taxi aggregating company Uber’s co-founder and CEO, Travis Kalanick is reported on planning to sell 29% of his

stake in the company amounting to $1.4bn. The transaction would be part of the tender offer in which SoftBank Group agreed to buy shares in Uber valuing it at $48 billion.

Kalanick, who resigned as CEO in June last year, owns 10% of the taxi offering company and is about to sell a third of them. Still on the Uber’s board of directors, Kalanick wanted to sell up to half of his shares but had to limit it due to the tender offer agreement.

In the previous year or so that saw Uber on the wrong side of the news, including accusations of a toxic workplace culture that led to an internal investigation over sexual harassment at the company, a hacking attack that stole personal information of 57 million passengers and 600,000 drivers, Kalanick’s resignation and, most recently, SoftBank’s investment in Uber; the move doesn’t come as a surprise.  Ironically, Kalanick had claimed during the Vanity Fair New Establishment Summit in October 2016 that he has never sold a single Uber share, even while he was still paying his home mortgage.

Although a 2016 capital investment statistic valued Uber at $68.5bn, the value dropped down to $48bn in the recent valuation by SoftBank Group.

 

Sources: Indian Express , Business Insider

Expedia boss Dara Khosrowshahi chosen as new Uber CEO

The Uber Technologies Inc board of directors met on August 27, 2017 to vote for its new CEO. It has chosen Dara Khosrowshahi, chief executive of travel company Expedia, to lead the ride-services company out of a year long crisis.

As per TechCrunch, the position for The Uber CEO had been vacant after the co-founder Travis Kalanick resigned in June. His departure came after Eric Holder, former U S Attorney General conducted an investigation into the culture of the company. Allegations of sexism and racism prompted this investigation.

Consequently, the Uber board has been involved with its own conflicts. Benchmark Capital, early investor and a board seat holder, sued Kalanick on the grounds of not disclosing information about the problems of the company.

Earlier on August 27, 2017, Jeff Immelt, chairman, General Electric Co, said he was no longer in the running for the job. He took to twitter and said, ” I have decided not to pursue a leadership position at Uber. I have immense respect for the company & founders- Travis, Garrett and Ryan.

According to the Guardian, the probable candidates narrowed to three people- Jeff Immelt, Meg Whitman and Khosrowshahi.

Meg Whitman, chief executive, Hewlett Packard Enterprise tweeted on August 28,2017, ” We have a lot of work still to do at HPE and I am not going anywhere. Uber’s CEO will not be Meg Whitman.”

Khosrowshahi, a 48-year-old Iranian American has led Expedia for 12 years. TechCrunch reported that under his term, Expedia’s stock market is up 32% so far this year, that is, it has tripled in the last five years.

SOURCES: REUTERS, THE GUARDIAN

IMAGE SOURCE: AP

Travis Kalanick, Uber CEO sued

On Thursday, a lawsuit was filed against the former Uber Chief Executive Officer Travis Kalanick for accusing him of filling the board seats of allies. Kalanick was forced to resign from the post of Chief Executive Officer at Uber Technologies Inc in June after they reported a series of scandals.
Inappropriate handling of the rape case by an Uber driver in India; dismissal of the top executives of Uber for sexual harassment allegations have been some of the troubles Uber have been handling with.
Benchmark Capital held a stake of $9 billion where the total worth achieved by Uber was $68 billion last year. The Venture Capitalist Bill Gurley was unhappy with Kalanick’s behavior towards his position and the organization. The lawyers who handles this case at Benchmark alleged that he used to “entrench himself on Uber’s board of directors and increase his power over Uber for his own selfish ends”
Travis Kalanick regarding the issue made a statement completely without merit and riddled with lies and false allegations.” There is no comments from Uber or Benchmark as of now. 
The search for the new Chief Executive Officer for Uber has begun, though the procedure is said to be hard.
Sources – Reuters, BBC

Uber leases out over a thousand defective cars to drivers in Singapore

Uber, the US ride-hailing giant, has the reputation of being “a dumpster fire” owing to their tendency of hurdling from one crisis to another. They are now facing an actual fire disaster with one of the recalled Honda Vezels, they purchased and rented out, bursting into flames, according to The Verge.

 Wall Street Journal reported Uber purchasing over thousand Honda Vezels which they leased to Singapore drivers, despite Honda recalling this model due to defective electrical components. Unfortunately, for Uber, one of these cars caught fire, melting the dashboard and windshield. Luckily, neither the passengers nor the driver, Koh Seng Tian, was hurt in this distressing incident.

Uber, in a statement to CNET, said, “As soon as we learned of a Honda Vezel from the Lion City Rental fleet catching fire, we took swift action to fix the problem, in close coordination with Singapore’s Land Transport Authority as well as technical experts. But we acknowledge we could have done more – and we have done so.” They have now established strict protocols and appointed three experts to guarantee a responsive system for safety recalls.

Co-Founder and ex-CEO, Travis Kalanick was pressured into stepping down in June with regard to the tumultuous year 2017 has been for Uber. His resignation was a result of US Attorney General, Eric Holder investigating sexual harassment claims against him. The inspection resulted in a recommendation of changing senior leadership in the company.

Sources – GadgetsNDTV, The Verge